Uranium Royalty (TSX: URC; NASDAQ: UROY), the world’s only uranium-focused royalty and streaming company, is raising US$22.9 million to fund future royalty acquisitions as well as physical uranium purchases.
The bought deal financing is the second by Uranium Royalty over the past four months. Last October, it arranged a US$30-million bought deal that priced its shares at US$2.94 each.
The current financing will see a syndicate of underwriters, led by Canaccord Genuity, buying roughly 6.7 million Uranium Royalty shares at US$3.40 per share. The underwriters will also have a 15% over-allotment option valid for 30 days.
Uranium Royalty’s most notable acquisition over the past year was a portfolio of royalties on U.S.-based uranium assets from Anfield Energy (TSXV: AEC) for US$1.5 million in cash.
Included in the portfolio were royalties on three conventional uranium mining projects located in Utah: the San Rafael project operated by Western Uranium & Vanadium (CSE: WUC), the Whirlwind project operated by Energy Fuels (TSX: EFR), and the Energy Queen project, also operated by Energy Fuels.
Also included was an in-situ recovery project, the Dewey Burdock located in South Dakota, operated by enCore Energy (TSXV: EU; NASDAQ: EU).
Uranium Royalty, which publicly listed in December 2019, now holds a portfolio of more than 20 royalties on uranium projects across the U.S. and Canada.
The company’s shares were down 7.5% in late morning trading on the NASDAQ. The stock traded at US$3.30, within a 52-week range of US$1.81 and US$3.76, giving it a US$372-million market cap.
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